Crackdown on personal service companies could raise £400m in tax

[d000hg]

Anyone prepared to fight this?

1.)What is a PSC? There is no definition in law.
2.) I run a business, I market myself to companies to whom I provide consultancy and advice for a daily fee.
3.) I pay VAT
4.) Each of my assignments is covered by a contract of engagement which shows that the assignment has a start and end date.
5.) I have no right of permanent employment, no holidays, pensions...

Anyone with me?

Not yet there isn't. But there is quite a clear definition - is the client engaging YOU or your company?

I can't believe the Torys will let anything this drastic to go ahead so soon after the kicking the Chancellor got over tax credits. And they've got the bare-faced cheek to say that they're the party of small business.

That's rather the issue. They do not consider contractors to BE a businesses, but individuals working through a business vehicle. Which for the bulk of contractors is true... regardless whether they're doing it for cynical tax avoidance reasons or simply because there's no realistic, viable alternative. A handful of contractors going on about how "I am a real business" doesn't change that.

[diseasex]

Not yet there isn't. But there is quite a clear definition - is the client engaging YOU or your company?

That's rather the issue. They do not consider contractors to BE a businesses, but individuals working through a business vehicle. Which for the bulk of contractors is true... regardless whether they're doing it for cynical tax avoidance reasons or simply because there's no realistic, viable alternative. A handful of contractors going on about how "I am a real business" doesn't change that.

then define business.

[Jog On]

Not yet there isn't. But there is quite a clear definition - is the client engaging YOU or your company?

That's rather the issue. They do not consider contractors to BE a businesses, but individuals working through a business vehicle. Which for the bulk of contractors is true... regardless whether they're doing it for cynical tax avoidance reasons or simply because there's no realistic, viable alternative. A handful of contractors going on about how "I am a real business" doesn't change that.

I see us a hybrid between permie/entrepreneur - basically what a freelancer is. We take on risk, lack of security and business admin/overhead, but in most cases with no entrepreneurial intentions of growing anything that will create jobs.

There has to be some trade off and reward in the risk/reward ratio we choose to take on as opposed to the "Oh I could never go contract I need my job security" permies who get taxed as such.

Weed out the BAU permatractors and make it a bit fairer for proper freelancers taking on risk. This draconian whacking a mosquito with a sledge hammer approach is very unbusinesslike and obtuse. Come on Gideon... you can do better than that old chap!

[EternalOptimist]

There has to be some trade off and reward in the risk/reward ratio we choose to take on as opposed to the "Oh I could never go contract I need my job security" permies who get taxed as such.

the idea that we should get taxed less because have more risk is so dumb I don't know where to begin

[diseasex]

I might actually start voting in this country. Cameron has to go

[diseasex]

A handful of contractors going on about how "I am a real business" doesn't change that.

Company A needs website done .
Company B says they can do the website for them
Company A hires and put on payroll one of the employees of company B to do the website

[LisaContractorUmbrella]

Quick update - due to the wonders of social media (which I must admit I do not fully understand) we have reached out to 46,842 people through our campaign via Thunderclap

[MarkT]

because It consultant can BUILD a network for local company ,but IT manager can "only" supervise projects and is dependent on larger corporation and can't really service small business?

Ah but you presume that the IT Manager has never been a techie.....!

This one has.....even though it's all a very, very long time ago now...

[diseasex]

Ah but you presume that the IT Manager has never been a techie.....!

This one has.....even though it's all a very, very long time ago now...

i'm off, let's wait for autumn statement.

[MrMarkyMark]

because It consultant can BUILD a network for local company ,but IT manager can "only" supervise projects and is dependent on larger corporation and can't really service small business?

One head of BI, where I was engaged, was very hands on.
In fact he built and configured a number of the servers.

Its not that clear cut.